AGENDA
ITEM
11 AGENDA
CALEXICO California ITEM
WILRE CALITORNIA AND MIXICO MELI
CITY COUNCIL
AGENDA STAFF REPORT
DATE: October 7, 2026 RECEIVED
TO: Mayor and City Council
Benjamin A Martinez, City Manager City of Calexico
APPROVED BY: City Clerk's Office
Fas 90ta
PREPARED BY: Karla Chaparro, Finance Director He
SUBJECT: Authorize the City Manager to Exercise Optional Extensions of The Pun Group Accountants & Advisors Agreement for Financial Audit Services for Fiscal Years 2026 and 2027
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Recommendation:
Staff recommends that the City Council authorize the City Manager, or designee, to exercise the optional extensions under the existing agreement with The Pun Group Accountants & Advisors for financial audit services for the fiscal years ending June 30, 2026 and June 30, 2027, in amounts not to exceed $88,529 and $92,070, respectively, and to execute any documents necessary to implement the extensions, subject to the appropriation of sufficient funds in the applicable fiscal year.
Background:
On September 3, 2025, the City Council approved an agreement with The Pun Group Accountants & Advisors to provide financial audit services for the fiscal year ending June 30, 2025. The approved agreement included options to extend audit services for two additional fiscal years, ending June 30, 2026 and June 30, 2027.
The Pun Group has served as the City's independent auditor for several years and has developed familiarity with the City's financial structure, internal controls, and reporting requirements. This continuity has supported the City's annual financial reporting and audit process.
Discussion and Analysis:
The existing agreement provides the City with the option to continue audit services with The Pun Group for Fiscal Years 2026 and 2027.
Staff is requesting authorization for the City Manager, or designee, to exercise these optional extensions under the existing agreement, subject to satisfactory performance, available budget appropriation, and the established not-to-exceed amounts.
1 Continuing with The Pun Group will provide continuity in the City's annual audit process and preserve the institutional knowledge the firm has developed through its prior work with the City. The firm's familiarity with the City's financial operations and reporting requirements also reduces the transition and learning time that would otherwise be associated with changing audit firms.
The proposed action does not modify the underlying scope of the existing agreement. Any material change to the scope of services or compensation beyond the authorized amounts would be addressed separately, as appropriate.
Fiscal Impact:
The optional extension costs established under the existing agreement are:
• Fiscal Year 2025-26 Audit: Not to exceed $88,529
• Fiscal Year 2026-27 Audit: Not to exceed $92,070
Funding for the audit services will be provided through the General Fund under the Finance Department's Audit Fees budget and will be subject to appropriation in the applicable fiscal year.
Coordinated With:
City Manager
Attachments):
1. Existing Agreement with The Pun Group Accountants & Advisors for Financial Audit Services 2 ATTACHMENT 1
P'UN GROUP
August 18, 2025 CiGO 1a Jolls Valeno Dśva, tills 100
Sam Oego, Coloan 0212%
City of Calexico
Ms. Karla Chaparro
420 Heber Ave
Calexico, CA 92231
RE: Audit Services Contract Extension -Fiscal Year Ending June 30, 2025, with the option to extend for 11o (2) acitional fiscal years
Demr Ms. Chaparro:
I would like to lake this opportunity to thank you for the confidence and support the Clty of Calexico (the "City") as provided lo us over the past yens and present this letter for your consideration regarding extending 'The Pun Group, aur's contract with the City.
All-Inclus|ve
Fiscal Year
Maximum Price a
FY 2025 $ 85,124
FY 2026 (Optional Year) 88,529
FY 2027 (Opllonal Year) 92,070
" The ubove quote inchides Single Audit services based on up to one (1) major program. The fees to audit nditional majo engene lens o les this win te ily Mangement before sorting srig trit worn OB Uniform Guidance. The 4) Supplemental reports, audits, or agreed-upon procedures must be added in a sritten ngreement prior to commencing aud vork. The Firm and the City will decuss and approve the scope and nssocinled costs of these task If the City agrees with the foregoing, please sign the copy of this letter in the space provided and return it to us.
PANGE COUNTY • SANDSO • SACRAMENTO • WALNOT CREEK • LAS VEGAS • PHOENIX Cily of Calexico
Audit Services Contract Exlension
We would very much like to continue ou relationship with the Cily of Calexico and stand ready to provide thelevel of service and commitment to which the City has become accustomed. If you have any questions, please feel fiee to call me al (858) 242-5102.
Sincerely,
The Pun Group, tur
K'1l
Andrew M. Roth, CPA | Engngement Partner
This letter correcily sels forth the understanding of the City of Calexico as described.
Acknowledged by:
City of Calexico
Ahil
Signature
Diana Nurcumbo, Mayik
Name and Title
910/20:25
Dale